In response to SC order SBP acts obligingly

KARACHI: Following the directives of the Supreme Court, the State Bank of Pakistan (SBP) has attached/allocated Rs21 billion from the government’s treasury for election in Punjab and KPK.

Sources in SBP told Business Recorder on Sunday that on the Supreme Court’s order, the SBP has decided to hold the required amount from the government’s account to ensure the availability of the funds for the elections in the two provinces on May 14, 2023.

The SC on Friday directed the State Bank to release Rs21 billion to the Election Commission of Pakistan (ECP) to enable it to hold elections in Punjab and KPK.

Supreme Court directs SBP to release Rs21bn for Punjab elections

A three-member SC bench comprised of Chief Justice of Pakistan (CJP) Umar Ata Bandial, Justice Ijaz Ul Ahsan, and Justice Munib Akhtar had issued the orders.

In a hearing of the case pertaining to Punjab Assembly elections, SC asked the SBP to arrange the money from the Federal Consolidated Fund.

Sources said that currently there are some Rs1.3 trillion funds available in the federal government’s Account No 1. Accordingly, following the directives of the Supreme Court, the SBP has allocated/ attached Rs21 billion for holding elections.

The side amount cannot be used for any other purpose and as per directives of the SC will be used only for the elections expanses of Punjab and KPK.

Sources said that the SBP is also likely to write a letter to the Finance Division on Monday to formally inform about this allocation/ attachment of Rs21 billion for election purpose on the directives of the Supreme Court.

Earlier, the SC directed the Federal Government to release funds to Election Commission for election in Punjab.

However, the federal government submitted a response to the apex court which stated: “Act of parliament is needed to disburse funds from the Federal Consolidated Fund and that bill was rejected hence there is no way the federal government can release funds.”

It may be mentioned here that on April 4, the SC in a Suo Motu case fixed May 14 as the date for provincial assembly elections in Punjab and ordered the federal government to release Rs 21 billion to the Election Commission of Pakistan (ECP) by April 10.

The ECP informed the court about the government’s reluctance to issue the amount needed for elections.

Copyright Business Recorder, 2023